Published: 3 hours ago

Zimbabwe is losing an estimated US$6,15 billion to illicit financial flows (IFFs) between 2020 and 2025, a drain that experts say is depriving the country of critical resources needed for development.

IFFs involve the illegal movement of money and assets across borders, whether in their source, transfer, or use. The United Nations Conference on Trade and Development (UNCTAD) has previously estimated that Africa loses about US$88,6 billion annually — 3,7 percent of the continent's gross domestic product (GDP) — through such capital flight.

Speaking during an online webinar titled Implications of Illicit Financial Flows on Zimbabwe's Development: Actors, Enablers, Beneficiaries and Policy Interventions, National University of Science and Technology (NUST) economist, Mr Stevenson Dhlamini, stressed the need for Zimbabwe to adopt a robust and technology-driven strategy to combat the challenge.

"We face highly rational players who adapt to new rules. Our solutions must be equally sophisticated, re-engineering the game to make illicit transactions irrational," he said.

Mr Dhlamini proposed the introduction of a National Digital Escrow System to monitor all major mineral exports, with secure platforms requiring foreign buyers to pay through a regulated system. He suggested that artificial intelligence and real-time data should be used to verify transactions against global benchmarks, while taxes and royalties should be automatically remitted to Treasury before sellers receive payments.

"This shifts us from ‘trust and verify' to ‘distrust and automate,' removing human discretion and closing the most vulnerable loopholes," he added.

Zimbabwe Environmental Law Organisation (ZELO) project lead, Ms Fadzai Midzi, said the mining sector was one of the hardest hit by IFFs, making legal reforms urgent.
"Government must reform outdated laws such as the Mines and Minerals Act to embed transparency and accountability," she said. "Zimbabwe should also join the Extractive Industries Transparency Initiative (EITI) to align with global best practices, while mandating beneficial ownership disclosure to prevent shell company abuse."

She also highlighted the role of civil society in amplifying citizen voices, pushing for transparency, and conducting evidence-based advocacy.

Bulawayo Progressive Residents Association (BPRA) executive director, Ms Permanent Ngoma, said curbing IFFs was crucial to strengthening service delivery and protecting public welfare.
"By reducing IFFs, more resources become available for national development, allowing for better governance, increased fiscal space, and the protection of citizens' welfare and public trust," she said.

The webinar was hosted by the Public Policy and Research Institute of Zimbabwe (PPRIZ) under its Strengthening Policy Engagement through Evidence and Dialogue (SPEED) project.
- The Chronicle

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